Skip to content

You don’t have to be exceptionally savvy to turn a mortgage loan into a gold mine.

July 5, 2010

The recession was a bonanza for savvy home owners. Before the US recession spread to Canada I paid a standard fixed mortgage of 4.25% on a 50% mortgage with normal amortization. I refinanced my home to an ARM (adjustable mortgage rate) of fluctuating rate between 1% and 3% on the average  depending how low the US Feds had reduced the prime landing rate in order to recover the economy from the recession. Sure, I had to spent an hour or two studying the history of Fed rate changes on Google, but it was worth my effort because I could now estimate how much money I could borrow against the refinanced mortgage. The end result is that today I sit on a wonderful huge mortgage at 1.8% interest and I have money to invest. By the way, my blog is definitely not for home owners who love to pay off their mortgage loan because they can’t sleep at night with a big loan (they actually can’t sleep at night for other reasons but they don’t know it). The whole smart scenario of mortgage loan manipulation is worth doing only if you know how to triple your investment returns using other people’s money. You do not refinance a mortgage loan for grocery money!

No comments yet

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: